To: Honorable Mayor and Members of City Council
From: Donna Lee, Finance Director
Prepared By: Jocelyn Ramirez, Management Analyst
TITLE:
Title
Amendment to Agreement for Revenue and Audit Consulting Services with Hinderliter, de Llamas and Associates (HdL)
LABEL
RECOMMENDED ACTION:
Recommendation
Approve and authorize the City Manager to execute on behalf of the City Amendment No. 5 to Agreement C2020-091 with Hinderliter de Llamas & Associates (HdL) for Revenue and Audit Consulting Services, in the increased amount of up to $500,000 for a total contract amount not to exceed $2,850,000 and extending the agreement for an additional year to June 30, 2027.
Body
DISCUSSION:
The City’s Finance Department issued a Request for Proposals on February 12, 2020, for Revenue Audit and Consulting Services to improve revenue recovery, data accuracy, and revenue business process improvement. The City entered into Agreement C2020-091 with HdL on April 23, 2020, for revenue audit and consulting services for an amount not to exceed $125,000 with an expectation that the total contract amount would provide approximately twelve to eighteen months of revenue audit and consulting services.
On September 1, 2020, the City amended Agreement C2020-091 to increase the contract amount by $250,000, ensuring continuity of services beyond the fiscal year, and to establish a three-year term effective upon execution of Amendment No. 1.
On April 17, 2023, the City approved a second amendment to increase the contract amount by $975,000 and extend the agreement term by one year, through June 30, 2024.
On June 4, 2024, the City approved a third amendment to increase the contract amount by $500,000, bringing the total contract amount to $1,850,000, and to extend the agreement term by an additional year through June 30, 2025.
On December 11, 2024, the City approved a fourth amendment to increase the contract amount by an additional $500,000, for a revised total contract amount of $2,350,000.
HdL started providing business license services in October 2020. In the four years since then, HdL recovered revenues are greater than the administrative fees paid to HdL for administrative and contingent fees.
The Finance Director has determined that services from HdL are satisfactory and recommends executing Amendment 5 to Agreement C2020-091 for an additional amount not to exceed $500,000 and to extend the contract for an additional year to June 30, 2027. Total contract amount shall not exceed $2,850,000 (the initial Agreement of $125,000, plus $250,000 for Amendment 1, $975,000 for Amendment 2, $500,000 for Amendment 3, $500,000 for Amendment 4, plus $500,000 for Amendment 5).
FINANCIAL IMPACTS:
The City’s General Fund operating budget allocates funding for the administrative professional services as a routine component of the City of Napa’s business processes.
CEQA:
The Finance Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Amendment 5_C2020-091
ATCH 2 - Amendment 4_C2020-091
ATCH 3 - Amendment 3_C2020-091
ATCH 4 - Amendment 2_C2020-091
ATCH 5 - Amendment 1_C2020-091
ATCH 6 - Agreement _C2020-091
NOTIFICATION:
None